The Next Move For Etsy Investors After The Stock's Recent Outperformance
Shares of Etsy Inc (NASDAQ: ETSY) have surged 58 percent since July 1, versus a mere 4 percent gain in the S&P.
“[Despite this recent outperformance], we believe there is still room for numbers to improve and, therefore, think the stock continues to work,” Citi’s Mark Kelley said in a report. He maintained a Buy rating on the company, while raising the price target from $16 to $20.
Neither the acquisition of Blackbird Technologies nor the new partnership with Intuit Inc. (NASDAQ: INTU) has impacted Etsy’s shares, Kelley mentioned.
On September 19, Etsy acquired Blackbird Technologies, with an aim to enhance its search capabilities. Engagement at Etsy’s Exploratory Search rise ~10 percent, while Blackbird claims to have witnessed a 10-20 percent conversion improvement on its website. Kelley expects the acquisition to boost conversion at Etsy.
“Etsy now offers a discounted rate on QuickBooks Self-Employed (U.S. and U.K.), which is immaterial at this point, but is a clear indication that the company continues to look for ways to ease seller paint points,” the analyst wrote.
The EPS estimates for 2016, 2017 and 2018 have been raised from $0.06 to $0.08, from $0.17 to $0.30 and from $0.37 to $0.50, respectively.
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Latest Ratings for ETSY
|Dec 2016||Stifel Nicolaus||Initiates Coverage On||Hold|
|Nov 2016||Roth Capital||Upgrades||Neutral||Buy|
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